In this article we will discuss about:- 1. Meaning of Trade Fairs and Exhibitions 2. Types of Fairs and Exhibitions 3. Objects of Participation 4. Preparation 5. Advantages 6. Disadvantages.
Contents:
- Meaning of Trade Fairs and Exhibitions
- Types of Fairs and Exhibitions
- Objects of Participation in Fairs and Exhibitions
- Preparation for Fairs and Exhibitions
- Advantages of Fairs and Exhibitions
- Disadvantages of Fairs and Exhibitions
1. Meaning of Trade Fairs and Exhibitions:
Fairs and exhibitions constitute the means of presenting goods and services in an attractive manner with the aid of colour, light and motion in order to catch the imagination of the visitor, attract his attention and get him interested in the goods or products displayed. They help in reaching the public who may not be reached in any other way or who by nature would disregard other media of publicity.
In other words, exhibition is a congregation of showrooms of different manufacturers under one roof. Exhibition is a huge gathering of businessmen and manufacturers from different parts for the purpose of display, demonstration and booking orders. Trade fairs are also huge fairs where the display and demonstrations are combined generally with entertainment.
Trade fairs and exhibitions play an important role not only in domestic markets but in international marketing too by bringing potential buyers and suppliers/ manufacturers in contact and imparting information about the relevant developments around the world. In certain cases they have a special significance. For example, in Libya where media advertisement for products is not permitted, the annual Tripoli International Trade Fair is very important and popular means to promote products and business.
Organising international trade fairs and exhibitions is not new to humanity but they are now becoming increasingly popular. Basically, these are the publicity tools where goods are displayed by the manufacturers in an attractive manner in order to catch the imagination of the visiting public and attract them with a view to get them interested in the objects or goods displayed.
In trade fairs and exhibitions, generally, the goods are displayed and their working is demonstrated, if the goods are of technical nature with a view to create the demand in the market. Generally, goods are not offered for sale, they are only displayed but very often consumer goods of small value are sold there on cash terms.
The items of daily use, foodstuff, electronic goods and auto products are advertised effectively through fairs and exhibitions. Trade fairs are organized in India by the Trade Fair Authority of India with the help of different industries and associations of manufacturers at different places of the country. These trade fairs are now organised on different themes such as Auto fair, Book Fair, Stationery Fair, Furniture Fair, Handicraft Fair, Good Living Fair, Packaging Fair, Leather Fair, and Plastic Fair.
Agro Product Fair, defence Fair, Transport Fair, Science and Technology Fair,” Gem and Jewellery Fair Delhi, 2015, Small Scale Industries fair etc. Besides theme fair general trade fairs are also organized by Trade Fair Authority of India on annual basis on fixed dates such as India International Trade Fair, Delhi.
Though fairs traditionally have been the medium of trade since time immemorial, the use and popularity of trade fairs and exhibitions has increased tremendously now-a-days. So has increased the number of trade fairs and exhibitions. International trade fair is a popular marketing tool in the recent years. Over 2000 trade fairs are conducted every year in over seventy countries. Some are so popular that exhibitors book space for them years in advance.
There is no clear demarcation between an exhibition and trade fair and these terms are commonly interchanged. A trade fair, however, as its name implies, is target directed. It is staged for the purpose of selling goods or demonstrating new ideas or techniques. An exhibition, on the other hand, is not specifically for trade but for the public. However, in the new concept of exhibition sale is witnessed.
2. Types of Fairs and Exhibitions:
Fairs and exhibitions are of following two types:
1. General or Horizontal Fairs and Exhibitions:
In general fairs, almost all types of goods—consumer as well as industrial—are exhibited. The participants in the fairs come from domestic and international markets. The general fairs attract visitors of all ages, tastes and types and therefore require good place to show consumer goods or new products. Separate pavilions may be set up for each nation or domestic manufacturers or for a group of national or international manufacturers.
Exhibits of one group may also be displayed in one pavilion. Such exhibitions and trade fairs are generally visited by business firms as well as general public. This is a good medium of disseminating information or to make the public aware of the newly manufactured product which is about to enter the market. The examples of such fairs are India International Trade Fair organised every year in Delhi and Milan Trade Fair, Milan.
2. Specialised or Vertical Fairs and Exhibitions:
These fairs and exhibitions are highly specialised in the sense that only specific products are displayed there. For example, the leather fair in Paris or the Book Fair in Frankfurt, International Book Fair, New Delhi, Auto Expo, New Delhi, Mumbai Sea Food Fair, Hanover Engineering Fair etc. These fairs are intended only for trade and industry and not for the general public.
The main purpose of organising such fairs and exhibitions is not only to conclude deals immediately but also to have first-hand knowledge of technical developments in that field in various countries or to identify business partners on a long term basis or to get ideas for product development and planning. Such fairs and exhibitions may be organised by the government company or specialised promotion institutions.
Specialised fairs and exhibitions may be classified into following two categories:
(i) Solo Exhibition:
‘Solo’ exhibitions are organised by the government of a country in another country where the market prospects of its export products are bright. Generally the Commodity Boards, the Export Promotion Councils or other government agencies organise such exhibitions.
The exhibition may be a specialised one where only a limited number of products are displayed or it may be a general exhibition to display all the important export products of the country organising the exhibition. Indee-79 is the best example of a specialised ‘solo’ or ‘national’ exhibition. It was organised by the Engineering Export Promotion Council in 1979 in Indonesia to exhibit Indian engineering products.
(ii) Company Exhibition:
Such an exhibition is organised by an exporting firm in another country to exhibit its own products. The exhibition may be open for traders or for both traders and consumers.
Selection of a Trade Fair for Participation:
The number of trade fairs and exhibitions has increased tremendously in recent years all over the world. About 6000 trade fairs are organised every year, out of which 800 are international trade fairs. The participants get a lot of information about the latest developments in the sector and can identify their markets and competitors in the field.
Other relevant factors such as cultural environment, habits, attitudes etc., of the public and the prospects for their products may be advantageous to the business. But the company, first of all, should think over seriously whether it should participate in the fair taking the costs of participation and that too in foreign exchange, into consideration. It necessitates identification of a set of criteria for taking a decision with regard to participation in a particular trade fair.
To take an appropriate decision as to whether to participate or not in the particular event, it would be desirable to have information about the fair on the following points:
(i) Name of the major firms who participated in the fair in the past.
(ii) Statistics on exhibitors and audience over a number of years. This will reveal whether the level of participation is increasing over the years or not.
(iii) Quality of the audience/visitors. How many of them were business visitors? This factor is very crucial, because what is important is not the number of visitors but whether the right people, namely, the potential buyers and decision-makers, are visiting the fair.
(iv) Cost of participation, charges and expenses involved and what are the services included in the charges. Other cost of participation, such as travelling expenses, erection of stall, advertisement literature etc. must be calculated.
(v) Importance of the firms participated in the exhibition in the past and the countries to which they belonged. Try to obtain a catalogue of exhibitors.
(vi) Support, particularly publicity support, given to the exhibitors.
(vii) Ask important buyers about their opinion on the fair.
(viii) If you intend to participate in a particular fair, try to go to the fair earlier and talk to the exhibitors and buyers. Get the feel of it as an export promotion tool.
(ix) What are the company’s objectives in the market where the fair/exhibition is proposed to be held?
(x) Could participation in the fair, either as a main activity or supplementary to other promotional activities, assist in the achievement of these objectives?
(xi) What are the other alternative promotional forms available to the company? Could the time, efforts and cost involved in such participation, achieve more than from other forms of promotion?
(xii) Has the product to be displayed a substantial market which presently has not been exploited but could be done through such participation?
If answers to the above questions are in affirmative, the firm may take a decision for participation in the fair, otherwise it may profitably incur such expenditure on other forms of promotion.
3. Objects of Participation in Fairs and Exhibitions:
The aim of modern International Fairs and Exhibitions is not merely to increase the sales but it has also widespread objects:
(i) To find the prospect in international markets.
(ii) To develop a long term market on international level.
(iii) To study competitive products and services.
(iv) To offer an opportunity to the customer to make comparative study of different producers and products and services.
(v) To motivate transfer of technical knowledge.
(vi) To see the manufactured goods of other countries by the producers of a country and to know their experiences.
(vii) To provide the consumers information personally about the new products and if a product has more than one use it should be exhibited.
(viii) To exhibit the heavy products physically.
(ix) To open path for commercial agreement with other countries.
(x) To make agreement of collective adventure with the producers of other countries.
(xi) To present proposals of foreign financial cooperation.
(xii) To show the picture of progress achieved in one’s country in various fields before the foreign consumers and producers.
Therefore fairs and exhibitions are important methods of sale promotion. These fairs and exhibitions are organised on local, regional, national and international levels. Fairs are often held on historical or religious base and they have fixed place and fixed time. But the exhibitions have no fixed time, no fixed place and no fixed organiser.
In these exhibitions small and big producers get a good opportunity to exhibit their industrial products and to tell about their characteristics. Most of the trade exhibitions are organised with the active cooperation of the government. Such exhibitions can be organised on national and international levels. Such exhibitions have been organised in India, Germany etc.
In many countries such exhibitions are organised. Some of these exhibitions are world famous, for example Anogam Food Fair, Hanover Engineering Fair, Paris Leather Fair, Frankfurt Book Fair, and Indian Sea Food Fair. The contribution of India Trade Promotion Organisation is noteworthy in promoting trade through fairs and exhibitions. This organisation arranges the participation of India in the fairs and exhibitions organised in India and outside.
Some of the main fairs and exhibitions organised by this organisation are- Consu Max, Delhi International Shoes Fair, Delhi Book Fair, Bharti International Business Fair, Indian International Leather Fair, Auto Expo etc. This organisation arranges 20 national and international fairs in one financial year and participates in 50 fairs in foreign countries. India also arranges fairs and exhibitions on large scale every year in foreign countries.
A company can participate in international trade fairs in one of the following ways:
1. Self-Participation:
Company itself can take initiative and organise its own stalls and bear the cost of participation.
2. Invited Participation:
If a company is invited by an overseas organisation to participate in a particular trade fair or exhibition, it can setup its own stall with the help of the organisation at special rates and support.
3. Participation with Government or Institutional Support:
Where the Government of the country or any institution formed to promote trade and industry organises the trade fair and the company participates in it, the Govt., or specialised institutions help in participation and even subsidise the participation. In India, India Trade Promotion Organisation provides the organisational support to the respective firms.
4. Preparation for Fairs and Exhibitions:
Once the decision for participation in the fair or exhibition is taken by the firm, it must plan its action before, during and after the fair/exhibition to derive the maximum benefit out of the participation. It must ensure that all the organisational problems associated with the participation are identified and solved.
The basic points to be considered in this connection are given below in the form of a checklist-
Basic Trade Fair Checklist:
I. Points before the Fair:
The following points should be considered before the fair starts:
(i) Prepare market research report and draw up marketing strategies.
(ii) Draft preliminary budget to submit to authorities.
(iii) Make site booking and deposit necessary registration fees etc.
(iv) Reserve hotel accommodation for stay of the employees and officers, as per their status during the fair.
(v) Appoint customs agent to clear exhibits and display materials.
(vi) Finalise budget proposal.
(vii) Prepare publicity and advertising materials.
(viii) Submit draft pavilion stand design to fair authorities for approval.
(ix) Issue general invitations (direct mailing).
(x) Appoint staff for fair, specially, staff knowing local language.
(xi) Arrange press conference or dinner on the eve of fair.
(xii) Arrangement for construction of stall, published material, gifts if any to be distributed during fair.
II. Points during the Fair:
(i) Ensure that the stand is adequately manned throughout.
(ii) Ensure that all the visitors to the stand are welcomed and their enquiries are answered and recorded.
(iii) Make proper arrangement for cleaning the stall daily.
(iv) Ensure that hand-out materials (hand bills, pamphlets containing information) are adequately available but these should not be wasted.
(v) Visit other stalls to establish personal contacts.
(vi) Arrange follow up appointments with visitors as required.
(vii) Send daily report to head office.
(viii) Prepare list of the visitors to the stall and collect their addresses.
(ix) Keep control on the expenditure, so that it does not cross the budget.
III. Points after the Fair:
(i) Arrange disposal of stand and exhibits in accordance with local customs and regulations.
(ii) Compare details of all enquiries received and business conducted.
(iii) Prepare the action plan for following up enquiries,
(iv) Arrangement be made for return of surplus material to head office,
(v) Make payment of all types.
(vi) Send the letter of thanks to those who helped during the fair,
(vii) Send detailed report to Head Office.
5. Advantages of Fairs and Exhibitions:
Fairs and exhibitions have important place in sales promotion. New products are displayed. To promote the business of a country the government itself organises commercial fairs and on the basis of government policy, Departments of the government and companies have to participate in them. In these fairs not only the traders and businessmen are invited but also the common people.
The success of participation depends on the position of the stall, exhibition of products and other products of attraction. It is necessary to draw the attention of the consumers because they often visit these fairs and exhibitions just for amusement. Therefore customers are given many types of concessions and facilities. They are attracted by giving free calendars, samples or diaries or a cup of tea or coffee.
The main advantages are as follow:
(i) Small Manufacturers:
Small manufacturers who are not able to advertise in foreign countries on large scale find an opportunity to exhibit their products. They also get an opportunity to know the reaction of customers on a large scale.
(ii) Display of Heavy Items:
Many items which are heavy and occupy much space cannot be taken to places of customers for displaying. So they can be easily displayed here.
(iii) Feedback:
The manufacturers of new products not only advertise their goods through exhibitions but also get the feedback and proposals of customers.
(iv) Wide Contacts:
Through these exhibitions an advertiser comes into a wide contact at one time.
(v) Fuller Explanation:
In exhibitions an advertiser can explain all the things about his product in full detail.
(vi) Wide Business Contacts:
While participating in these exhibitions business circles widen. Not only have the exporters participated in them but also the suppliers of raw material, technicians and manufacturers of machinery.
(vii) Knowledge Regarding Competitors:
One gets knowledge regarding other competitive products and knows about good and bad quality of the product. One comes to know about the thoughts of other traders.
(vii) Other Benefits:
The businessmen who visit these fairs get information about government policies, government incentives and prospects of business. For example, Sea Food Export Association and Marine Development Authority provide full information regarding export to the traders who visit India Sea Food Fair.
6. Disadvantages of Fairs and Exhibitions:
The following are disadvantages of fairs and exhibitions:
(i) Irregular:
This medium of advertisement cannot be used regularly because they are held irregularly.
(ii) Cost:
Much expenditure is incurred on such advertisement because fairs and exhibitions are arranged separately.
(iii) Limited Effect:
This advertisement affects only those customers who visit the exhibitions. Small traders feel insignificant before big advertisers. Moreover, they are not successful in attracting many people towards their stalls.
(iv) Others:
The officials of the business have to face additional burden due to their participation in these fairs and exhibitions. Due to these fairs they have to leave their other tasks and have to remain present in these fairs. They have to complete many formalities also.